No tax will be imposed on income from the Universal Pension Scheme, and no tax will be payable on any amount invested in this scheme. The National Board of Revenue (NBR) issued a SRO in this regard, mentioning that the exemptions came into effect from November 5, 2023.
The NBR, in a separate SRO, lowered the income tax rates for companies producing jute goods and taxpayers other than companies for the 2023-24, 2024-25 and 2025-26 tax years.
The rate of income tax has been set at 10 per cent both for jute goods-producing companies and taxpayers, the SRO reads.
Universal Pension – a much talked-about and highly anticipated government venture – launched on August 16, ushering in a new era for the citizens of Bangladesh from all corners of the society.
As part of Awami League’s 2008 election manifesto, the Universal Pension Scheme (UPS) came into reality 15 years later. Prime Minister Sheikh Hasina had inaugurated the initiative virtually from Ganabhaban.
The government on January 31 formulated the Universal Pension Management Act 2023, and then created the National Pension Authority on February 13. Later on August 13, the finance ministry issued a gazette notification on Universal Pension Scheme Rules 2023.
According to the rules, a person – depending on eligibility – can avail one of four types of pension scheme. Progoti scheme is for private sector employees, Probash for expatriates, Surokkha for self-employed persons, and Somota for the underprivileged.
A subscriber – after maturity of a scheme – will be able to avail 2.30 to 12.31 times the deposited money, depending on their installment. Monthly installments will be Tk 500 minimum and Tk 10,000 maximum.
Schemes are available under eight tenures spanning from 10 years to 42 years.
